Independent Director

Definition:

A Non-Executive Director who is not an employee and does not have a material relationship with the company, and is deemed by applicable securities or other laws or exchange codes as “independent.” An Independent Director does not own shares in the company in order to lower the likelihood of a conflict of interest. Also referred to as an Outside Director.

See also Non-Executive Director (an Independent Director must be a Non-Executive Director, but a Non-Executive Director is not always independent (e.g., a Non-Executive Director might be appointed by a significant shareholder).

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